AI
Jun 16, 20261
60%
SpaceX valuation soars to $2.9T in volatile trading, briefly surpassing Amazon
SpaceX's stock experienced extreme volatility in its first trading days, briefly reaching a $2.9 trillion valuation and surpassing Amazon, before settling lower. The company raised $86 billion in its IPO and subsequently announced the acquisition of AI coding company Cursor, with valuation gains of approximately $1 trillion since going public driven by investor enthusiasm for its AI ambitions despite current financial losses.
Quick Facts
Who
SpaceX
What
SpaceX began trading as a publicly listed company
When
Friday: IPO launch at $1.7 trillion valuation
Where
Nasdaq stock exchange
- SpaceX began trading as a publicly listed company
- Stock climbed 20% on first full trading day
- SpaceX announced acquisition of Cursor
- Options trading commenced on SpaceX shares
- Valuation briefly exceeded Amazon's market cap
SpaceX experienced dramatic swings in valuation during its first days as a public company, briefly surpassing Amazon to become the world's fifth-most valuable company before settling lower. The company's shares climbed 20% on Monday, its first full trading day following Friday's initial public offering at approximately $1.7 trillion valuation. On Tuesday, the stock spiked further to a peak valuation of $2.9 trillion, driven by news of the company's acquisition of AI coding company Cursor and the commencement of options trading, before closing lower.
The volatility reflects extreme investor enthusiasm for SpaceX despite significant financial headwinds. The company posted a $4.9 billion loss on $18.7 billion in revenue in 2025, starkly contrasting with Amazon's $78 billion profit on $717 billion in sales for the same period. Nevertheless, investors appear optimistic about SpaceX's diversification into new revenue streams, including non-binding compute leasing deals with Anthropic and Google, as well as the pending Cursor acquisition set to close in the third quarter.
The IPO raised nearly $86 billion in fresh capital for Elon Musk's company, though notably only 4% of total shares were made available for public trading. This limited float, combined with options trading launching mid-week, created conditions for extreme price swings. During Tuesday's session, traders exchanged over 300 million SpaceX shares—more than half of the 555 million publicly available—according to Nasdaq data. Volatility extended into after-hours trading, when the company's valuation briefly exceeded Amazon's market capitalization again before declining.
SpaceX is acquiring Cursor for $60 billion in company shares, building on a collaboration first announced in April. At that time, Elon Musk acknowledged that his AI company xAI, now integrated into SpaceX, "was not built right the first time around" and required rebuilding "from the foundations up." The company's valuation has surged approximately $1 trillion since going public, driven largely by investor expectations that SpaceX can develop an AI business potentially worth trillions of dollars—a significant bet for a company that recently restructured its AI operations substantially.
Why This Matters
SpaceX's IPO and subsequent valuation surge illustrate the speculative fervor surrounding AI-focused companies and the significant leverage that a limited public float can create in stock price volatility. For investors, this demonstrates both the opportunity and risk in early-stage public offerings, particularly for companies with substantial losses but ambitious growth narratives. The $1 trillion valuation gain in days highlights how market expectations for future AI revenues can dramatically outpace current financial performance, making this relevant for portfolio allocation and risk assessment.
Timeline & Sources
Jun 13, 2026
WireSpaceX IPO launches with valuation of approximately $1.7 trillion, raising $86 billion
Jun 14, 2026
WireFirst full trading day: SpaceX stock climbs 20%
Jun 16, 2026
WireSpaceX announces Cursor acquisition for $60 billion in shares; options trading commences; stock spikes to $2.9 trillion peak valuation; briefly surpasses Amazon; significant volatility with 300+ million shares traded; valuation settles lower by market close